###### The problem

Gareth sells cupcakes. He adds 40% profit to the cost price. He sells the cupcakes for £1.68 each. He wants to increase his profit to 60% of the cost price. How much should he sell each cupcake for?

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Gareth sells cupcakes. He adds 40% profit to the cost price. He sells the cupcakes for £1.68 each. He wants to increase his profit to 60% of the cost price. How much should he sell each cupcake for?

40% profit = 1.4

=> original x 1.4 = 1.68

=> original $=\frac{1.68}{1.4}=1.2$

Cost price = 1.2

=> 60% = 1.6

=> 1.2 x 1.6 = £1.92